ECB cuts inflation forecasts, sees higher 2017 growth

Reuters Staff

2 Min Read

FRANKFURT, Sept 7 (Reuters) - The European Central Bank on
Thursday lowered some of its inflation projections to reflect a
firming euro but lifted some growth forecasts after the euro
zone economy registered its best growth run in a decade.
The euro has gained 13 percent against the dollar
this year, a mixed blessing for the ECB as it reflects a robust
economy but caps inflation by reducing the cost of imports.
The ECB now sees inflation of 1.5 percent in 2017 and 1.2
percent in 2018, compared with its forecasts of 1.5 percent and
1.3 percent respectively from June. Both are well below its
target of just under 2 percent.
Growth this year was seen at 2.2 percent versus an earlier
1.9 percent forecast.
The following are the ECB staff's new projections for
inflation and GDP growth, with June's forecasts in brackets. The
ECB updates projections once a quarter.
2017 2018 2019
GDP growth 2.2 1.8 1.7
(1.9) (1.8) (1.7)
Inflation 1.5 1.2(1.3 1.5
(1.5) ) (1.6)
(Reporting by Balazs Koranyi; Editing by Catherine Evans)